thecryptobasic.com
As the Cardano price breaks a cup and handle pattern, the $0.40 price region becomes the next bullish target.
With the crypto market showing a bullish trend amid growing optimism for a bull run, Cardano is experiencing a breakout. The completion of this trend continuation pattern signals a potential rally for ADA to $0.40.
As the tenth largest cryptocurrency with a market cap of $13.29 billion and a 10.76% increase over the last seven days, Cardano is demonstrating a healthy recovery. Will this momentum help Cardano climb higher in the crypto rankings?
Cardano’s Cup and Handle Breakout
In the 4-hour chart, Cardano’s price action reveals a cup-and-handle pattern breakout. The neckline of this pattern is at $0.36, and recent bullish reversals indicate a breakout rally.
According to Fibonacci levels on the 4-hour chart, the breakout has surpassed the 61.80% Fibonacci level at $0.366. Cardano’s price has jumped 12.80% over the last five days, starting from a double-bottom reversal near $0.328 to its current price of $0.37.
The technical indicators continue to support a bullish outlook for Cardano as the recovery gains momentum. Notably, the 50 and 200 EMA have formed a golden crossover on the 4-hour chart.
Additionally, the 100 and 200 EMA are nearing a bullish crossover. The MACD and signal lines have also regained positive alignment, with bullish histograms making a return.
Will Cardano Surpass $0.40?
Cardano’s price action has formed a bullish engulfing candle on the 4-hour chart, leading to a breakout above the 61.80% Fibonacci level. As the breakout rally picks up steam, Fibonacci levels suggest potential targets of $0.381 and $0.399 at the 78.60% and 100% levels.
With increasing momentum, Cardano’s price could reclaim $0.40, with the next potential target at the 1.618 Fibonacci level of $0.452.
Conversely, key support levels for the breakout rally are at $0.363 and $0.356, corresponding to the 50% Fibonacci level.